Lysander Minerals Corporation
TSX VENTURE : LYM

Lysander Minerals Corporation

September 14, 2010 09:00 ET

Lysander Announces $8 Million Unit Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 14, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Lysander Minerals Corp. (TSX VENTURE:LYM) (the "Company") is pleased to announce that it has entered into a letter of intent with Salman Partners Inc., which will act as agent for a best efforts private placement offering (the "Offering") consisting of 38,095,000 units (the "Units") at a price of $0.21 per Unit for aggregate gross proceeds of approximately $8,000,000.

The placement will facilitate the ongoing advancement and development of the Company's Verticalnaya anthracite project in the Donbass coal basin of south-eastern Ukraine.

Each Unit will consist of one common share (a "Common Share") of the Company and one common share purchase warrant (a "Warrant) entitling purchase of one Common Share at an exercise price of $0.30 per Common Share within 12 months of the closing of the Offering.

The Company expects to close the Offering on or about September 30, 2010, subject to applicable regulatory approvals. All securities issued as part of the Offering will be subject to a four-month hold period from the closing date.

On behalf of the Board,

Bryce M.A. Porter, President

About Lysander

The Company recently announced the appointment of Mr. John Byrne, formerly Executive Chairman of Western Coal Corporation, as Executive Chairman of the Company. Mr. Byrne and Mr. John Conlon, also a director of the Company, have been involved in the development of eight coal mines in recent years.

Using high standards of safety and efficiency, it is planned to develop the Verticalnaya mine in stages and lead developments by western companies in the Donbass coal basin.

The Verticalnaya anthracite mine, a former producer, is well located to serve export markets as well as steel operations, industrial users and power plants in Ukraine. Ramp up of construction for the first phase of development, Verticalnaya North, is commencing now.

Key project indicators shown in the September 2008 technical report for Verticalnaya, available on SEDAR (www.sedar.com) and the Company's website at www.lysanderminerals.com, include:

Net present value @12% US$ 352.1 million
Internal rate of return 35.2%
Average cash operating cost per saleable tonne US$ 31.19/tonne
   
Proven reserves 16,200,000 tonnes
Probable reserves 11,000,000 tonnes
Measured resources 57,300,000 tonnes
Indicated resources 18,900,000 tonnes
Total resources 76,200,000 tonnes
    Resources are inclusive of reserves.

A March 2010 technical report for the first phase of operations at Verticalnaya North is also available on SEDAR and the Company's website.

Please visit our website at www.lysanderminerals.com for further information.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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